The Impact Of Different Methods Of Depreciation On The Profitability Of A Company (a Case Study Of Anammco Motor Enugu State)

The main purpose of this study is to measure the impact of different methods on the profitability of accompany the differ methods of providing for depreciation has been posing a problem to many people because the understanding and the use of these methods provide varying depreciation expenses on the sane fixed asset in viler of these when profit is reported using deferred methods part the service potential of a depreciable asset is exhausted in the cost revenue generating process each period the cost of these services meets be deducted from revenue of the period in order to measure the periodic income the expired cost must be recovered before a business is considered as well as at the beginning of the period and troublesome area in accounting.

Deprecation was actually a cost of doing business executive tended to view depreciation as a matter of setting aside speciation during prosperous period for the replacement of depreciation assets.

Chapter one we examined the need for the study, finding out what impact depreciation on the company’s profitability and tax.  It also looked into the significance of the study that is building funds for the study of their asset at the end of the existing asset useful life. The scope was ANAMMCO, Niger gas limited and premier Breweries Plc.

Chapter two examined and reviewed the causes of depreciation that can be physical deterioration from wear and tear, the different method of calculating depreciation. Like straight-line method, revaluation methods etc. its impact on income statement and the evaluation of depreciable methods.

Chapter three dealt with research design and methodology.

Chapter four discussed the presentation analysis and interpretation of data the different method of depreciation and tested the hypothesis stated in chapter one.

Chapter five was the findings, recommendations and the conclusion.

 

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGMENT

ABSTRACT

TABLE OF CONTENTS

LIST OF TABLES

CHAPTER ONE

INTRODUCTION 

PREAMBLE

STATEMENT OF PROBLEMS

OBJECTIVE OF THE STUDY

HYPOTHESIS FORMULATIONS

THE SIGNIFICANCE OF THE STUDY

SCOPE OF THE STUDY

LIMITATION OF THE STUDY

DEFINITION OF TERMS

REFRENCES

CHAPTER TWO

LITERATURE REVIEW

THE NATURE OF THE DEPRECIATION

CAUSES OF DEPRECIATION

METHODS OF CALCULATING DEPRCIATION

THE IMPACT OF DEPRECIATION ON INCOME STATEMENT

EVALUATION OF DEPRECIATION METHODS

THE CONCEPT OF PROFIT

DEFINITION OF PROFIT

THE RELATIONSHIP BETWEEN BALANCE SHEET,PROFIT AND LOSS ACCOUNT

DEPRECIATION METHOD AND MANAGEMENT DECISION

DECLINING PRODUCTIVITY CONTROVERSY

IMPACT OF INFLATION

COST OF A PLANT ASSET

ESTIMATED LIFE OF A FIXED ASSET

TERMINAL VALUE OF A FIXED ASSET

REFERENCES

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

INTRODUCTION

INSTRUMENT FOR DATA COLLECTION AND PROCEDURES

SOURCES OF DATA

THE SAMPLE SIZE CALCULATION AND SELECTION

VALIDITY OF THE QUESTIONNAIRE

QUESTIONNAIRE ADMINISTRATION AND COLLECTION

STATISTICAL TREATMENT

DECISION RULE

REFERENCES

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

BASES OF COMPUTATION USING THE DIFFERENT METHODS OF DEPRECIATION

HYPOTHESIS TESTING

CHAPTER FIVE

FINDINGS, RECOMMENDATIONS AND CONCLUSION

FINDINGS

RECOMMENDATIONS

CONCLUSION

BIBLIOGRAPHY

APPENDIX   1

APPENDIX   2